The latest case in Africa: “Ethiopia” defaults on debt payments. After the grace period expired on Dec. 25, an agreement was reached in principle with bilateral creditors to suspend debt payments. There have been efforts to resolve debt since 2564.
On December 25, 2566, Bloomberg News reported that Ethiopia It became Africa’s latest debt defaulter. Due to the inability to pay interest after the grace period expires on December 25, 2566.
Ahmed Shide, Minister of Finance of Ethiopia Said on December 21, 2566 that Ethiopia must pay $33 million in bonds on December 11, which the government does not want to pay because it wants to treat all creditors the same.
Hinjat Shamil, Senior Reform Advisor, Ministry of Finance Confirmed on Dec. 25 that Such payment has not yet been received. and will not receive payment. This is because Ethiopia reached an agreement with bilateral creditors last month to suspend debt payments.
Debt defaults have made Ethiopia one of a growing number of developing countries. which has defaulted on euro bonds in recent years Including Zambia, Ghana and Sri Lanka.
In proposing to restructure The government asks bondholders to extend the redemption period for amortization from July 2571 to January 2575 and reduce interest to 5.5% from the current 6.625%. However, the face value will be $1 billion.
Ethiopia is seeking to negotiate new commitments through the G20 framework, which has gained momentum after Zambia and Ghana made progress on debt restructuring. That allows for coordination of debt relief from government and private lenders to set standards for debt treatment.
Ethiopia has reached an agreement in principle with bilateral creditors to suspend debt payments. It has been trying to resolve debt since 2564 as civil war in the northern Tigray region eroded investor confidence. and cause economic growth to slow down
refer : https://www.bloomberg.com/news/articles/2023-12-25/ethiopia-fails-to-pay-coupon-becoming-latest-african-defaulter?srnd=markets-vp
Source link : https://moneyandbanking.co.th/en/2023/82010/
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Publish date : 2024-06-17 17:13:07
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